In an attempt to boost shareholder value,
Tractor Supply Company
) Board of Directors authorized the company to buy back
additional shares worth $1 billion, taking the total
authorization to $2 billion. The program, which was initiated in
Feb 2007, has now been extended to Dec 31, 2017.
After including the effect of a two for one stock split on shares
repurchased before Sep 27, 2013, the company had bought back 37.7
million shares for nearly $838.6 million, as of Dec 28, 2013,
post which it had shares worth $1.2 billion remaining under its
expanded program. These remaining shares constitute roughly 12%
of the company's common stock, considering current prices.
The company's healthy cash flows and efficient capital allocation
provide it with ample financial liquidity to return excess cash
to its shareholders. This in turn, has enabled Tractor Supply to
remain focused on its balanced strategic approach to ensure a
strong financial position.
The company's endeavor to enhance shareholder value is also
evident from its dividend paying nature. Earlier this month, this
Tennessee-based company declared a quarterly dividend of 13 cents
a share to shareholders of record as on Feb 24, 2014, payable on
Mar 11, 2014.
Tractor Supply is the largest operator of farm and ranch stores
in the U.S., and has a unique market niche of serving the
lifestyle needs of recreational farmers and ranchers. The company
recently posted its fourth quarter fiscal 2013 earnings results
of 68 cents, which was 23.6% higher than the prior-year
Moreover, it beat the Zacks Consensus Estimate of 65 cents by
4.6%. Results benefited mainly from improvement in both the top
line and margins. As a result, this farm and ranch store retailer
provided a favorable outlook.
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We believe that Tractor Supply continues to progress well with
its growth initiatives, which include expanding its store base
and incorporating technological advancements to serve clients
better. The company leverages an extensive network of stores to
penetrate into target markets, which in turn, enable the company
to generate healthy sales and gain market share.
Tractor Supply currently holds a Zacks Rank #3 (Hold). Other
better-ranked stocks warranting a look in the retail space
) holding Zacks Rank #1 (Strong Buy) and
), holding a Zacks Rank #2 (Buy).